Electronic fraud: understanding, preventing, and responding

The figures are alarming: 64% of French companies were victims of fraud in 2023, an increase of 28% over the previous year, with average losses exceeding €50,000 per incident. This explosion in cyber fraud affects all sectors, from SMEs to large companies, with increasingly sophisticated techniques powered by AI—a deepfake attack now occurring every five minutes. This article guides you in understanding these risks, preventing them effectively, and responding in the event of a confirmed incident.

What is electronic fraud?

Definition

Electronic fraud refers to all fraud committed via digital means to harm the financial interests of companies, crossing geographical borders with low execution costs for criminals.

Difference from traditional cybercrime

Unlike traditional cybercrime, which aims to disrupt or steal data, electronic fraud directly targets financial and organizational processes for immediate gain through embezzlement or extortion.

Main types

Before delving into the different forms that electronic fraud can take, it is useful to understand that it is part of a broader landscape of digital threats. Some techniques are directly linked to the attacks identified among the main cyberattacks in 2025, which reinforces the need to be familiar with the types of fraud in order to better protect against them.

• Wire transfer fraud: Manipulation of payment processes to divert funds to fraudulent accounts.
• Phishing and spear phishing: General phishing versus personalized targeting of key employees.
• Spoofing: Digital identity theft to impersonate trusted entities.
• Ransomware exploiting fraud: Combining data encryption with fraud techniques to maximize illicit gains.

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The main forms of electronic fraud in businesses

Cybercriminals deploy a varied arsenal of sophisticated techniques, each exploiting specific vulnerabilities in modern organizations.

Phishing and Spear Phishing

Traditional phishing uses mass campaigns with generic bait.

Spear phishing takes a surgical approach: cybercriminals study their target, analyze the organizational structure, and customize their attacks for a significantly higher success rate.

CEO Fraud / Fake Wire Transfer

This technique, also known as CEO Fraud or Business Email Compromise (BEC), exploits the organizational hierarchy: fraudsters impersonate an executive to request an urgent transfer, citing a confidential operation that requires discretion and speed.

Social engineering and identity theft

This approach exploits employee trust by collecting public information to construct credible scenarios. Fraudsters mimic communication styles and use internal jargon to access sensitive data or change bank details.

Business email compromise (BEC) and ransomware

Business email compromise is one of the most sophisticated threats. Cybercriminals infiltrate email systems, observe exchanges, and then act at the optimal moment. Modern ransomware incorporates elements of fraud beyond simple data encryption.

Consequences of electronic fraud for businesses

Beyond the immediate financial damage, electronic fraud has a domino effect with multiple and lasting repercussions.

Direct financial losses

The immediate financial impacts are often dramatic. Average losses amount to more than €50,000 per incident for more than half of the companies affected. These amounts include fraudulent transfers, ransoms paid, and business interruptions.

Reputational impacts

Public disclosure of major fraud can permanently erode the trust of customers, partners, and investors. Nearly one-third of companies consider terminating their relationship with partners or suppliers in the event of fraud. This mistrust can result in lost business, recruitment difficulties, and a decline in the value of the company. A reputation built over years can collapse in a matter of hours.

Legal and regulatory risks

Victim companies may face regulatory sanctions, particularly in the event of a GDPR violation if personal data is compromised. The new NIS2 obligations reinforce security and incident reporting requirements. Company directors may be held criminally liable in the event of gross negligence in the implementation of adequate protective measures.

Indirect costs

Beyond direct losses, companies must bear significant costs: investigations, specialized legal assistance, crisis communication, post-incident staff training, security system upgrades, and sometimes organizational restructuring. These costs can amount to several times the initial fraud amount and extend over several years.

Preventing electronic fraud: technical and organizational best practices

Technical measures to protect against cyber fraud

The first line of defense relies on the deployment of robust and complementary security technologies.

• Multi-factor authentication (MFA): Essential protection that prevents access to accounts even if credentials are compromised. The use of authentication apps offers greater security than SMS.
• Anomaly detection and DLP (Data Loss Prevention): Systems that analyze user behavior and block unauthorized exfiltration attempts using artificial intelligence.
• Network segmentation: Isolation of financial systems from general networks with strict access controls to limit lateral movement by attackers.

Organizational measures to prevent fraud

Technological solutions are not enough: effectiveness depends on rigorous processes and a shared security culture.

• Double validation of sensitive operations: Any transaction exceeding a predefined threshold must be cross-validated by at least two authorized persons.
• Regular team awareness and training: Training in fraud techniques, attack simulations, and periodic reminders to maintain a high level of vigilance.

Monitoring and internal audits

Effective prevention requires continuous assessment of vulnerabilities through regular, targeted testing.

• Phishing tests: Simulated campaigns to identify vulnerable employees and tailor training.
• Simulated targeted attacks: Reproduction of CEO fraud scenarios to test the robustness of procedures and reveal organizational weaknesses.

How to respond to confirmed electronic fraud?

Despite all precautions, no organization is immune to an incident. The speed and methodology of the response then determine the extent of the damage.

Immediate detection and internal alert

Every employee must be familiar with the incident reporting chain, with a 24/7 alert system and dedicated emergency contacts for immediate response.

Activation of the incident response plan

Immediate isolation of compromised systems, backup of digital evidence, and analysis of logs. A multidisciplinary crisis unit (IT, legal, communications, management) coordinates actions.

Legal actions

Rapid filing of complaints with preservation of evidence, immediate contact with banks to freeze funds, and solicitation of specialized authorities (ANSSI, judicial police).

Crisis communication

Rapid and factual information to critical stakeholders, balancing transparency and image protection, while complying with legal notification obligations.

Regulatory frameworks and useful resources for combating electronic fraud

Standards and benchmarks

• ISO 27001/27002: Information security: Comprehensive framework for establishing and maintaining an information security management system with technical and operational controls.
• ISO 22301: Business Continuity Plan: Guide to maintaining critical operations in the event of a major security incident.

Role of key players

The fight against electronic fraud mobilizes an ecosystem of experts and specialized institutions. These players offer crucial technical, regulatory, and financial support to businesses.

• CERT (Computer Emergency Response Team): Teams specializing in responding to IT security incidents, providing technical assistance, malware analysis, and coordination during major cyberattacks.
• ANSSI (Agence nationale de la sécurité des systèmes d’information): French cybersecurity authority that issues alerts, provides technical expertise, and supports organizations during major security incidents.
• Banking and cyber insurance organizations: Sophisticated prevention solutions and coverage tailored to the risks of electronic fraud.

Benefits of proactive compliance

• Improved cyber insurance conditions
• Strengthened image among partners,
• Tangible reduction in the risk of incidents
• Easier crisis management.

Faced with a threat that already affects 64% of French companies, with an average cost of €50,000 per incident, the fight against electronic fraud requires a comprehensive strategy combining technology, procedures, and ongoing awareness. Urgent action is needed: security audits, team training, and updating financial validation procedures to prepare for a threat that has become unavoidable. In this context, using secure, sovereign, and certified digital solution providers such as Oodrive is essential to protect daily business processes and ensure that company data is managed in accordance with the highest security standards.